Blackford Capital has sold its portfolio company Custom Profile to the employees of the company in partnership with Mosaic Capital Partners through an employee stock ownership plan. The sale of Custom Profile is Blackford’s second exit from its 2012 vintage Michigan Prosperity Fund.
Custom Profile is a manufacturer of plastic extruded products primarily for the office furniture, appliance, and medical device industries. The company, founded in 1992, is led by CEO John Boeschenstein and is headquartered in Grand Rapids, MI with an additional facility in Juarez, Mexico (www.custom-profile.com).
Blackford acquired Custom Profile from its founder Sam Nicholas in April 2012. In September 2016, Custom Profile acquired the plastics extrusion business of Sheboygan Falls, WI-based Bemis Manufacturing Company which provided Custom Profile with inroads into the medical industry.
“After an exciting and successful seven years we believe Mosaic represents an excellent buyer for the business and gives the company excellent prospects for continued success in the future,” said Martin Stein, founder and managing director of Blackford Capital.
Blackford Capital invests in middle-market manufacturing, distribution, and service companies in both mature and growing industries. Target companies will have revenues of $20 million to $100 million and EBITDAs of $2 million to $20 million. Blackford currently has 11 portfolio companies located across the United States. The firm is headquartered in Grand Rapids, MI (www.blackfordcapital.com).
Mosaic Capital Partners invests from $3 million to $15 million of mezzanine debt and equity in transactions with enterprise values from $15 million to $75 million. Transaction types include control buyouts, ESOP leveraged buyouts, acquisition financings, and leveraged recapitalizations. Typical target companies will have revenues of $10 million to $100 million and EBITDA from $2 million to $10 million and will be located in the Southeastern, Mid-Atlantic and Midwestern sections of the United States. Sectors of interest include business services, healthcare, consumer products, niche manufacturing, food and beverage, and value-added distribution. Mosaic Capital Partners is headquartered in Charlotte, NC (www.mosaic-cp.com).
The buy of Custom Profile is the ninth active portfolio company for Mosaic. “We were consistently impressed, from start to finish, by the culture instilled by the Custom Profile management team. For as deeply invested as they are in their customers and products, they are equally as focused on their community, employees, and overall impact. Everything about them screamed employee ownership from our first interaction,” said Keith Butcher, a managing partner with Mosaic.
Mercantile Bank (www.mercbank.com) and Graycliff Partners (www.graycliffpartners.com) provided debt financing for this transaction alongside Mosaic.
Stout (previously Stout Risius Ross) was the financial advisor to Blackford on this transaction with Varnum (www.varnumlaw.com) providing legal services.
© 2019 Private Equity Professional | May 1, 2019
